Commerce ministry reduces floor price of basmati exports to $950 per tonne

The government has reduced the floor price for basmati rice exports to $ 950 per tonne from $ 1,200 per tonne amid concerns that higher prices were hurting outward shipments.

In a communication to export promotion body APEDA, the Union Commerce Ministry has said "it has been decided to revise the price limit for registration of contract for export of basmati rice from $ 1,200 per tonne to $ 950 per tonne."

The government on August 27 decided not to allow exports of basmati rice below $ 1,200 per tonne to restrict possible "illegal" shipment of white non-basmati rice in the garb of premium basmati rice.

Recently, the food ministry had said the government is considering the industry's demand to reduce the floor price.